Many consumers 'forced to rely on overdrafts'

Overdrafts are being relied upon by a number of UK consumers, new figures suggest, as they seek ways to meet their outgoings.

As many as ten per cent of people may be in a constantly overdrawn financial state, according to moneysupermarket.com.

Meanwhile, the price comparison website also suggests that the last 12 months have seen 38 per cent of consumers get credit by dipping into their overdrafts.

The firm's head of banking Kevin Mountford has noted the high costs that people may face if they rack up large overdraft debts.

He commented: "This can be an extremely expensive debt to carry if it hasn't been agreed with your bank in advance."

Inflation could also prove problematic for people who regularly make use of their overdrafts, he added.

The debt problems facing a number of the country's residents have also recently been highlighted by the Citizens Advice Bureau.

Posted by Tom Burroughs.